Is it permissible to take out a loan from banks (traditional or Islamic) to purchase a house in installments, especially if the Islamic bank's rate is higher and non-decreasing?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
Borrowing with interest is forbidden in Islamic law unless there is a necessity. Since purchasing a house is possible through -compliant Murabaha, there is no necessity here. The fact that the profits of an Islamic bank are higher than the interest of a conventional bank does not make permissible interest-based borrowing. Usury is the opposite of trade, and Allah has permitted trade and forbidden usury.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/117536
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 117536
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy